INSURANCE LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2020

Change in Liability for Variable Annuity Contracts with GMDB and GMIB Features and No NLG Feature

For the Three and Nine Months Ended September 30, 2020 and 2019


	GMDB						GMIB
	Direct		Assumed		Ceded		Direct		Assumed		Ceded
	(in millions)
Balance at July 1, 2020	$	5,004	$	70	$	(105)	$	6,122	$	232	$	(2,931)
Paid guarantee benefits	(121)		(6)		3		(110)		(9)		21
Other changes in reserve	233		4		10		113		(3)		92
Balance at September 30, 2020	$	5,116	$	68	$	(92)	$	6,125	$	220	$	(2,818)

Balance at July 1, 2019	$	4,714	$	76	$	(106)	$	3,759	$	192	$	(1,897)
Paid guarantee benefits	(102)		(6)		3		(71)		15		20
Other changes in reserve	155		4		(4)		979		(2)		(576)
Balance at September 30, 2019	$	4,767	$	74	$	(107)	$	4,667	$	205	$	(2,453)


	GMDB						GMIB
	Direct		Assumed		Ceded		Direct		Assumed		Ceded
	(in millions)
Balance at January 1, 2020	$	4,780	$	76	$	(104)	$	4,673	$	187	$	(2,139)
Paid guarantee benefits	(372)		(16)		11		(287)		39		58
Other changes in reserve	708		8		1		1,739		(6)		(737)
Balance at September 30, 2020	$	5,116	$	68	$	(92)	$	6,125	$	220	$	(2,818)

Balance at January 1, 2019	$	4,662	$	82	$	(113)	$	3,746	$	184	$	(1,733)
Paid guarantee benefits	(328)		(17)		11		(183)		25		55
Other changes in reserve	433		9		(5)		1,104		(4)		(775)
Balance at September 30, 2019	$	4,767	$	74	$	(107)	$	4,667	$	205	$	(2,453)

Schedule of Net Amount of Risk by Product and Guarantee

Direct Variable Annuity Contracts with GMDB and GMIB Features

at September 30, 2020


	Guarantee Type
	Return of Premium			Ratchet			Roll-Up			Combo			Total
	(in millions, except age and interest rate)
Variable annuity contracts with GMDB features
Account Values invested in:
General Account	$	15,155		$	89		$	57		$	171		$	15,472
Separate Accounts	48,407			8,812			3,021			31,083			91,323
Total Account Values	$	63,562		$	8,901		$	3,078		$	31,254		$	106,795

Net Amount at Risk, gross	$	125		$	94		$	1,864		$	19,561		$	21,644
Net Amount at Risk, net of amounts reinsured	$	125		$	91		$	1,319		$	19,561		$	21,096

Average attained age of policyholders (in years)	51.3			68.1			74.7			70.0			55.3
Percentage of policyholders over age 70	11.0		%	47.7		%	69.8		%	53.3		%	20.0		%
Range of contractually specified interest rates	N/A			N/A			3% - 6%			3% - 6.5%			3% - 6.5%

Variable annuity contracts with GMIB features
Account Values invested in:
General Account	$	—		$	—		$	17		$	220		$	237
Separate Accounts	—			—			23,124			33,217			56,341
Total Account Values	$	—		$	—		$	23,141		$	33,437		$	56,578

Net Amount at Risk, gross	$	—		$	—		$	1,100		$	14,461		$	15,561
Net Amount at Risk, net of amounts reinsured	$	—		$	—		$	349		$	13,066		$	13,415

Average attained age of policyholders (in years)	N/A			N/A			64.0			70.0			67.8
Weighted average years remaining until annuitization	N/A			N/A			5.7			0.7			2.5
Range of contractually specified interest rates	N/A			N/A			3% - 6%			3% - 6.5%			3% - 6.5%

Assumed Variable Annuity Contracts with GMDB and GMIB Features

at September 30, 2020


	Guarantee Type
	Return of Premium			Ratchet			Roll-Up			Combo			Total
	(in millions, except age and interest rates)
Variable annuity contracts with GMDB features
Reinsured Account Values	$	888		$	4,915		$	247		$	1,079		$	7,129
Net Amount at Risk assumed	$	5		$	241		$	14		$	142		$	402

Average attained age of policyholders (in years)	68			73			78			76			73
Percentage of policyholders over age 70	45.9		%	65.6		%	79.9		%	76.1		%	65.2		%
Range of contractually specified interest rates (1)	N/A			N/A			3%-10%			5%-10%			3%-10%


	Guarantee Type
	Return of Premium			Ratchet			Roll-Up			Combo			Total
	(in millions, except age and interest rates)

Variable annuity contracts with GMIB features
Reinsured Account Values	$	878		$	42		$	217		$	1,090		$	2,227
Net Amount at Risk assumed	$	1		$	—		$	27		$	296		$	324

Average attained age of policyholders (in years)	72			74			72			70			71
Percentage of policyholders over age 70	65.0		%	62.2		%	61.9		%	54.5		%	59.5		%
Range of contractually specified interest rates	N/A			N/A			3.3%-6.5%			6%-6%			3.3%-6.5%

______________

(1)In general, for policies with the highest contractual interest rate shown (10%), the rate applied only for the first 10 years after issue, which has now elapsed.

Schedule of Fair Value of Separate Accounts by Major Category of Investment

Investment in Variable Insurance Trust Mutual Funds


	September 30, 2020				December 31, 2019
Mutual Fund Type	GMDB		GMIB		GMDB		GMIB
	(in millions)
Equity	$	41,259	$	16,739	$	42,489	$	17,941
Fixed income	5,371		2,679		5,263		2,699
Balanced	43,684		36,656		45,872		38,445
Other	1,009		267		865		263
Total	$	91,323	$	56,341	$	94,489	$	59,348

No Lapse Guarantee Liabilities

The change in the NLG liabilities, reflected in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets, is summarized in the table below.


	Direct Liability (1)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in millions)
Beginning balance (2)	$	948	$	845	$	898	$	813
Paid guarantee benefits	(6)		(7)		(32)		(16)
Other changes in reserves	60		54		136		95
Ending balance	$	1,002	$	892	$	1,002	$	892

______________

(1)There were no amounts of reinsurance ceded in any period presented.

(2)The beginning balance for the nine months ended September 30, 2020 was reduced by $22 million to reflect the balance transferred to Assets HFS at December 31, 2019.